Google Ads Bidding Strategies for eCommerce: Maximize Your ROI

Struggling to get a return on your eCommerce advertising investment?

Investing in advertising and not seeing a significant boost in online sales can be frustrating. You might have tried adjusting your Google bidding strategies but with no real success.?

That’s when you should consider having the best Google Ads bidding strategy for your eCommerce business to strive for.?

Check out our blog on the best Google Ads bidding strategies to help you navigate the complex world of Google Ads and ensure that your investment results in real growth.

How Does Google Ads Bidding Work?

Google is the largest pay-per-click advertising network in the world. Like most digital advertising networks, Google Ads services use a bidding structure.

Google marketers fight to appear when a user searches for something. The guidelines are simple: you receive better ad placement (in Search or throughout the Google Display Network) if you bid more money and have a higher ad score.

The program considers several variables, including the following, and the entire bidding process is automated:

• Quality score
• Ad and landing page relevance
• Target audience relevance
• Competition

Google AdWords determines which advertisements to display and how much to charge for each click based on these variables.

However, there is some scope. You can manage and modify their bids to meet their marketing objectives.?

For example, an advertiser can utilise automatic bidding methods (like Target CPA or Optimize Conversions) or human CPC Google bidding strategies to optimize clicks. They can then determine the most economical approach to achieving their advertising objectives.

Also read: How Much Does Google Ads Cost in 2024?

Top Google Ads Bidding Strategies to Maximize ROI

Google Ads bidding strategies play a crucial role in determining the success of your advertising campaigns, especially for eCommerce businesses. Let’s explore the top Google Ads bidding strategies tailored specifically for eCommerce businesses:

1. Target CPA (Cost Per Acquisition)

This is one of the most popular tactics in which you instruct Google to target your real acquisition or cost per action (click, signup, buy). This approach works best, generally speaking, when you want to generate leads and hit targets.

The following are some benefits of CPA bidding:

• You can automatically configure your campaigns to target conversions (such as sign - ups or downloads of mobile apps) for your daily budget.
• The algorithm will utilize the data from your conversion tracking to increase conversions at a reduced cost and avoid ineffective clicks.

2. Target ROAS (Return on Ad Spend)

Target ROAS is a clever bidding technique that maximizes advertising spending for a specific return on investment. Marketers specify the maximum return they are willing to pay, and Google modifies the bids based on how likely an ad would meet that threshold.

Remember that you can only see your goal ROAS when your campaign has achieved a certain threshold of conversions:

• 15 for Google Display Network ads in the previous 30 days
• 10 per day for campaigns on apps
• 75 conversions for Discovery campaigns in the last 30 days
• 30 conversions for Video Action campaigns in the last 30 days

This approach works best for eCommerce companies that advertise various products and need to target customers who are already considering purchasing.?

But remember that target revenue-on-ad spend (ROAS) is not the same as revenue, so it won't always result in the most sales and won't ever try to maximize revenue for you; instead, it only seeks to achieve a particular return on ad spend.

3. Maximize Conversions

The ‘maximize conversions bidding method’ aims to maximize the conversions within the campaign budget limit regardless of the CPA's cost per action. Google will modify bids based on how well its computers forecast which clicks will result in conversions.

This is a great choice for brands operating on a tight budget and for campaigns that want to increase the conversion rate and have conversion tracking enabled.

You will obtain more conversions with this bidding option, but not always at the best price. The rationale is that Google AdWords' algorithm may occasionally overshoot since it seeks to target those who are most likely to make a purchase.?

4. Maximize Conversion Value

The goal of this approach is to maximize conversion value while staying within the campaign budget. Compared to maximizing conversions, this optimizes for conversion value rather than the total number of conversions.?

Therefore, Google will aim for audiences likely to purchase valuable products rather than audiences likely to make a purchase.

Use caution when implementing this method as it may force Google to overspend on advertising, increase the cost of conversions, and reduce your return on advertising investment.

5. Increase Clicks

This method aims to maximize the number of ad clicks while staying within your campaign budget. If you want to reach new audiences or obtain additional data and your conversion rate is strong, this is a great bid choice.

It's also a very effective strategy for increasing website or landing page traffic.?

However, make sure your entire budget isn't devoted to this tactic, and keep an eye on your conversion rates and return on advertising spend (ROAS), as the clicks you receive with this bidding choice may not always be the most valuable.

6. Maximize CPM (Cost per 1000 impressions)

One Google bidding strategy that might help you concentrate on creating awareness campaigns is to maximize CPM. If you select this target cost option, 1,000 impressions at an average price will be invoiced.

YouTube and the Google Display Network both offer TCPM bidding for advertisements. Recall that even if your audience chooses to ignore your advertisement, you will still be charged.

7. Increase Viewable CPM (Cost per 1000 impressions)

Viewable CPM (VCPM) bidding aims to maximize your daily Google Display Network advertising budget by obtaining the most feasible impressions. This is one of the greatest options for creating an awareness campaign because you won't be charged for video views from viewers who chose not to watch the advertisement.

Remember that although a CPM-driven campaign has a known cost, more effective ways exist to achieve conversions or a high return on advertising spend.

8. Manual Cost Per Click (CPC)

The manual CPC approach allows you (or your Google Ads agency) to place bids at the ad group or keyword levels. This kind of bid has several benefits, one of which is that it gives you a high degree of control.

Moreover, you will likely pay less per click than your maximum CPC, the highest amount you will be charged.

However, this technique does not employ Google's algorithms to identify individuals most likely to convert. It will take more time and effort on your part.

9. Maximize Cost Per View (CPV)

Maximizing CPV bidding is one strategy for increasing exposure through a YouTube video campaign. You will be charged for views but won't be charged if a user chooses to skip the video.

This approach is a good choice to reach a larger audience because it is typically fairly inexpensive. Still, you will not get many conversions when using a CPV bidding technique.

10. Target Impressions Share

You may place bids to bring you the desired number of impressions using the target impression share. Here are 3 strategies to be aware of if you aim to target impression share:

• Top of the page
• The absolute top of the page
• Anywhere on the Google SERP

Using this method, you establish a maximum cost per click, but watch out for it not to go too low, as this will limit your bids. Finding the ideal balance is important because failing to set a limit, CPC can increase your advertising budget.

You must use this strategy if you want to bid on brand keywords and consistently appear at the top of search engine results pages. However, remember that impressions-sharing targeting can be costly and may not necessarily result in conversions.

Also read: 15 Must-Follow PPC Trends to See Success in 2024

Tips to Get Started With Google Ads Bidding

You must fully grasp Google Ads' bidding strategies to optimize your campaigns. Here are some crucial tips to kickstart your journey and maximize your Google AdWords bidding experience:

1. Use Bidding Automation Rules

By implementing automation rules, you can automate bidding modifications based on pre-established criteria, such as device kind, time of day, or performance indicators. This guarantees that bids are continuously optimized to fulfill campaign goals effectively.

2. Bidding Adjustments

Use bidding adjustments to fine-tune bids for particular targeting parameters, such as device, location, demographics, or ad timing. To optimize performance and successfully reach your target audience, adjust bids accordingly.

3. Use Bidding Scripts

Use bidding scripts to automate bid strategies and tailor adjustments based on sophisticated data like inventory levels, rival activity, and weather. With the help of bid scripts, you may precisely and flexibly optimize your bids for the best outcomes.

4. Leverage Seasonal Trends

You can profit from seasonal patterns and variations in demand by modifying bids to coincide with holidays, special occasions, and periods of high demand. To maximize ROI during seasonal peaks, bid strategy best practices should be adjusted by changes in customer behavior, which can be predicted by monitoring and analyzing performance data.

5. A/B Test Different Keywords and Offers

By experimenting with different combinations of promotional offers and keywords to drive clicks and conversions, find the best combinations of promotional offers and keywords. Evaluate the effectiveness of various keyword variations and bids to adjust your strategy.

6. Bid on Branded Keywords

Place a bid on branded keywords to guarantee brand exposure. Using the bidding strategy Google Ads to target your brand name, you may draw in highly intent traffic and keep rivals from appearing in search results for your brand phrases.

7. Use Portfolio Bidding

Put portfolio bidding strategy Google ads to use to manage bids among several ad groups or campaigns effectively. With portfolio bidding, you can optimize bids to attain desired results throughout your advertising portfolio by setting bidding goals and allocating budgets based on performance objectives.

8. Use Remarketing Lists (RSLA)

Target visitors who have interacted with your website or app by utilizing remarketing lists for search advertisements (RLSA). RLSA campaigns, which target users with bids and content based on their past activities or interests, can raise ad relevance and increase conversion rates.

Also read: The Guide to Optimizing Google Ads for Higher Conversion Rates

The Bottom Line

Brands can go beyond simple bidding by utilizing any of these elements to target their campaigns toward particular goals effectively. However, ongoing optimization and monitoring are necessary for any of these to succeed.?

If your brand wants to succeed, it needs to be able to concentrate on campaigns, adjust to shifting consumer behavior, and adapt to the shifting dynamics of the Google Ads market.?

By remaining up to date, exercising strategic thought, and taking initiative, we can maximize Google AdWords' potential and improve your company's performance.

Our expert team can help you implement effective Google Ads bidding strategies tailored for eCommerce. Boost your sales and get the most out of your ad spend. Contact us today to learn more!